SEC and CFTC Clear Path for Spot Crypto Trading on U.S. Exchanges

• SEC and CFTC said U.S. exchanges can trade spot crypto products without breaking current laws. 

• The agencies will quickly review applications from exchanges that want to offer these crypto trading services. 

• This move helps American crypto markets compete with international exchanges around the world.

The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) issued a groundbreaking joint statement on September 2, 2025. The statement clarifies that registered exchanges are not prohibited from facilitating the trading of certain spot crypto asset products. This coordinated regulatory approach marks a significant shift in U.S. crypto market policy.

The agencies announced they will promptly review filings and requests from designated contract markets, foreign boards of trade, and national securities exchanges seeking to facilitate spot crypto trading. The joint initiative represents collaboration between the SEC’s Project Crypto and the CFTC’s Crypto Sprint programs.

Regulatory Framework Provides Market Clarity

The statement addresses operational concerns that previously created uncertainty for market participants. The joint effort exemplifies how the two agencies can coordinate to promote trading venue choice and optionality for market participants. Clearinghouses now have explicit permission to collaborate with custodians in managing customer accounts.

National securities exchanges, designated contract markets, and foreign boards of trade can explore listing spot crypto products without regulatory concerns. The agencies emphasized monitoring underlying markets and establishing common reference pricing locations. Enhanced transparency through trade data sharing on registered exchanges represents another key framework component.

Staff members from both agencies invited exchanges and market participants to contact them directly with questions. This open-door policy signals a commitment to supporting compliant market development. The statement removes previous ambiguity surrounding leveraged and margined retail crypto transactions on registered platforms.

Strategic Response to Global Competition

The timing reflects broader U.S. efforts to maintain competitiveness in digital asset markets. Global exchanges continue expanding crypto offerings while attracting institutional and retail liquidity. The joint statement positions American markets to compete effectively with international crypto trading venues.

SEC Chairman Paul Atkins emphasized, “Market participants should be free to choose where they trade spot crypto assets”. This statement underscores the regulatory commitment to market-driven solutions rather than restrictive oversight.

The collaborative approach represents a departure from previous cautionary regulatory stances. Both agencies acknowledged the need for regulatory clarity while maintaining investor protection standards. The framework balances innovation support with traditional market oversight responsibilities.

Traders can now move forward with confidence under existing regulatory structures. The joint statement eliminates uncertainty that previously discouraged spot crypto product development on U.S. exchanges. This regulatory evolution supports the broader goal of establishing America as a leading blockchain innovation hub.